Herbert Smith Freehills and Indonesian associate firm Hiswara Bunjamin & Tandjung have advised a joint venture of Pertamina-Rosneft on engineering contracts for a new USD 16 billion refinery in Tuban, East Java, designed to increase Pertamina's refining capability and strengthen Rosneft's presence in the Asia-Pacific petroleum market.
"Tuban will be one of the most technologically advanced refineries in the world, so the engineering contract process was more complex than usual," said Herbert Smith Freehills Partner Danila Logofet, who has led the team advising the project company since 2018.
Herbert Smith Freehills worked with Matthew Goerke, senior international counsel at Hiswara Bunjamin & Tandjung, says that "this is one of many energy and infrastructure projects which have advanced following the recent Indonesian presidential elections. Greater political certainty is refocusing project companies, financiers, construction companies and bidders on Indonesian projects, and we expect more announcements of this type into 2020."
The Pertamina-Rosneft joint venture project company that will build and operate the new refinery was established in October 2017, with Pertamina holding a 55% stake and Rosneft 45%.
Herbert Smith Freehills Singapore-based Counsel Mark Veitch led the negotiations with Rosneft Counsel Alexey Kolentsev, supported by Herbert Smith Freehills Moscow-based Senior Associate Oxana Koerner and Associates Yulia Turkina (in Moscow) and David Douglas (in Hong Kong).